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During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. The financial statement effect of these purchase transactions would be to: Select one: a. Increase expenses (Cost of goods sold) by $337.8 million b. Increase liabilities (Accounts payable) by $337.8 million and decrease noncash assets (Inventory) by $337.8 million c. Increase liabilities (Accounts payable) by $337.8 million d. Decrease cash by $337.8 million e. Decrease noncash assets (Inventory) by $337.8 million

Respuesta :

(C) Increase liabilities (Accounts payable) by $337.8 million.

What is inventory?

  • Inventory, often known as stock, refers to the items and supplies that a company keeps for the purpose of resale, manufacturing, or use.
  • Inventory management is largely concerned with establishing the shape and positioning of stocked products.

What is purchasing on credit?

  • A credit buys, sometimes known as purchasing anything "on credit," is a purchase made today that will be paid for later.
  • When you use a credit card, for example, your financial institution pays for the products or services upfront and then collects the payments from you later.
  • Purchase on credit refers to an increase in liabilities.

Therefore, the correct option is (C) Increase liabilities (Accounts payable) by $337.8 million.

Know more about credit here:

https://brainly.com/question/26867415

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